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ATMANIRBHAR BHARAT OFFERS NEW LEASE OF LIFE FOR MICRO SMALL MEDIUM ENTERPRISES
National lockdown due to Covid-19 pandemic had really affected micro, small and medium enterprises. Without steady income they find it difficult to pay interest for loans taken from banks and even pay salaries to employees. Realising the significance of giving a helping hand to these industries, Union Finance minister had announced Rs 3 lakh crore collateral free automatic loans for business including micro small and medium enterprises and other businesses. The announcement under Atmanirbhar Bharat Abhiyan has given a new lease of life to these small industries. Rs 50,000 crore equity infusion through MSME Fund of funds was also announced which will help the revival of companies. M Singaravel of Ami Engineering works, manufaturers of home appliances says that Finance minister announcement that collateral free loans will be provided will help the small enterprises.
Further industrialists welcomed the decision to enforce the order that MSME receivables from government will be released in 45 days. This will be very useful for the lockdown affected small enterprises. The announcement of Finance Minister that there will be no global tenders for goods services has been widely welcomed. The enterprises say that this should be extended for at least two years and if global company comes then they should be insisted to make the products in India itself. Moreover this will lead to growth of ancillary units in India. Government has allowed companies with turnover up to Rs 5 crore to pay GST after six months. Companies say that there should not be any limit and all small and medium enterprises should be allowed to pay GST after six months.
BHEL Small Industries Association –BHELSIA Tiruchirapalli has welcomed the announcements made for stressed units. Rs 20,000 crore subordinate debt for two lakh MSMEs which have Non-performing assets or stressed was announced by Union Finance Minister. Banks are expected to give subordinate debt to MSMEs equivalent to 15 per cent of stake up to a maximum of Rs 75 lakh.
Small enterprises have also welcomed government decision that EPF contribution worth Rs 2,500 crore for employees and employers will be extended for three more months up to August. Government has also decided to reduce statutory PF contribution from 12 per cent to 10 per cent for 3 months to infuse liquidity up to Rs.6750 crores.
Krishnamurthy, Director of a private company appreciated the government decision to contribute EPF as the MSMEs are badly affected by lockdown.
Tiruchi District Tiny and Small Industries Association TIDITSSIA president R Ilango said that the announcements made by Union Finance Minister Smt Nirmala Sitharaman are very useful to boost the confidence of MSME units in a difficult time. He said that small and medium enterprises were hoping for more such help including waiving of interest charges.
Industries need the support of government to revive from the shock of Covid-19 lockdown. The announcements made by government at the right time will definitely be a major fillip to the small and medium industries.
Employees in MSME
Engineering enterprise
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